Investor presentation...2017/03/15 · 3 Contents ENGIE Commitments in CSR Green Bond Framework...

Green Bond Framework Presentation

Investor presentation

March 15, 2017

Executive Summary

15/03/2017 GREEN BOND FRAMEWORK PRESENTATION 2

High top management commitment to Sustainability

o Definition or our ambition for 2020 with 6 CSR objectives and strong involvement of CSR within the

Group

o Support to carbon price, support to access to energy (e.g., Rassembleurs d’Energies), support to solar

(e.g., Terrawatt)

o Consequently, ENGIE has improved its Sustainability ranking to top notches by main providers

(RobecoSAM, CDP, Dow Jones, Sustainalytics, Vigeo)

Support from ENGIE to develop Green Bonds markets

o Issuance of a €2.5bn Green Bonds in 2014 which provided large liquidity to the market

o Participation to the Green Bond Principles Executive Committee since 2014

o Publication of a Green Bond Framework, which takes into account and goes beyond market best

practices

• Inclusion of all renewable energies, including hydro (large hydro being subject to compliance to reference standards)

• Clear Green Bond governance process

• Advanced disclosure

• Second opinion and external verification of the allocations

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Contents

ENGIE Commitments in CSR


Examples of Eligible Projects

Update on ENGIE 2014 Green Bond

Appendix

GREEN BOND FRAMEWORK PRESENTATION15/03/2017

The ENGIE CSR 2016 Results

Objective Key Performance Indicator

Effective value in

2015

Effective value in

2016

Target value in

2020

1) Supporting our customersin the energy transition

Satisfaction rate among our B2C customers na 81% 85%

2) Renewables Share of renewable energy in the generating capacity 18,3% 19,5% 25%

3) Greenhouse gas emissions% reduction in ratio of CO2 emissions to energy production compared with 2012 +0,6% -11,3% -20%

4) Stakeholder dialogue % of industrial activities covered by a suitable dialogue and consultation mechanism

na 18,9% 100%

5) Gender diversity % of women in the Group’s workforce 21,6% 21,9% 25%

6) Health and safety Internal frequency rate for occupational accidents 3,6 3,6 < 3

ENGIE committed in 2016 to six new ambitious CSR objectives to be achieved by 2020, which aims at

supporting its strategic ambition and demonstrating its impacts on society.

The 2016 CSR results indicate that the Group is on track and fully committed to implement its

sustainable growth strategy.


What is CSR for ENGIE?

Long term business thinking

- Designing successful services & offers in line with the expectation of our clients

- Improving relationships with our stakeholders to deliver sustainable projects and reinforce our

integration into the territories

- Mastering more efficiently risks (operational, environmental, regulatory, legal, reputation) including

for supply chain

- Increasing staff engagement and attracting talents

- Improving processes and optimizing global costs

- Facilitating access to financing


Terrawatt Initiative : global non-profit organization, bringing together governments, investors, energy

suppliers, NGOs and citizens to promote competitive solar power as a decisive tool to address power

needs, sustainable development goals and climate change

Launch of Foundation for social investment and human development (Fondation pour l’investissement

social et le développement humain, « FISO »)

Foundation « Agir Contre l’Exclusion » : in favor of social and civil commitment to fight against all forms of

exclusion

Green Finance : one of the pioneers in Green Bond issuance, support to the Paris Green Financial

Center and Green Bond Principles

Carbon Price : determination of an internal Carbon Price applied to our investments and support of

worldwide market mechanism to promote a higher carbon price

Access to energy : commercial offer development

Social network : Twitter, LinkedIn

Definition or our ambition for 2020 with 6 CSR objectives and strong involvement of CSR within the Group

Integrated Thinking

6

ENGIE Top Management Involvement in CSR

15/03/2017 GREEN BOND FRAMEWORK PRESENTATION

83

85

46

DJSI World Industry Avg.

ENGIE

Industry MUW Avg.

Total Score (2016)

The ENGIE CSR 2016 Ratings and Rankings

(1) Eco Management & Audit Scheme(2) Environmental Management Scheme

CDP Climate Change : A list

CDP Water : A- list

(2016) (2016)

Performance: 61/100

Category robust

Listed in the Euronext VigeoEiris indexes :

World 120, Europe 120, Eurozone 120 and France 20

CERTIFICATIONS

81% of revenues covered by ISO 14001,

EMAS(1), other external EMS(2) certifications

and internal EMS (2016)

ENGIE Industry Leader

of the Multi-Utilities and

Water sector (MUW)

Listed in the Dow Jones

Sustainability Indexes

World & Europe

Awarded the “Gold

Class Sustainability

2017 Award”

ECOVADIS (2016)

73 / 100

Advanced level


(2017)

70 / 100

Average level

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Contents





Appendix


Eligible Renewable Energy Projects

o Includes hydro, geothermal, wind, solar, biogas, biomass

and any other renewable sources of energy.

• Biomass projects may be included subject to local

production and lack of conflicting utilization of the

resources.

• Large hydroelectricity production may be included, subject

to the development of a recognized international standard

for Green Bonds, including inter alia Climate Bonds

Initiative, UNFCCC Clean Development Mechanism, IFC

Reference Standards for hydro projects or equivalent, and

the conformity of ENGIE projects to such international

standards.

Use of Proceeds

9

Eligible Energy Efficiency Projects

o Includes heating and cooling network (which recover

heat sources that would otherwise be lost), co-

generation, optimization of buildings or plant

efficiency, systems for energy management (Smart

Grids, Smart Metering), and more generally energy

and facility management solutions.

Eligible Natural Resources Preservation Projects

o Includes water and/or waste management

In compliance with ESG criteria evaluated by Vigeo Eiris, Eligible Green Projects include investments

in:

— Projects,

— Major acquisitions of companies and minority equity participations, and

— R&D aiming at developing new products and solutions,

in the following categories of Projects:


Evaluation and Selection of the Eligible Projects

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Business Units

The Green Bond Committee

— Propose projects , acquisitions and R&D investments

— Control ESG criteria compliance, and prepare audit trails and collection of necessary

evidence to facilitate external auditor’s verification

Chaired by Head of the CSR Department

Members include :

o the Corporate Finance Department,

o the CSR Department,

o Business Units developing Eligible Green Projects

o other ENGIE Group qualified persons

Validates the selection of Projects

Reviews the proceeds allocation


Information to the “Ethics, Environment and Sustainable Development Committee” of the Board of

ENGIE

o per technology and per geographic zone :

• Installed capacity in MW;

• Annual GHG emissions avoided in tons of CO2 equivalent; and

• Annual renewable energy production in MWh.

Management of Proceeds and Reporting

11

o Until the net proceeds are allocated in full and later in the case of any material change in the

list of Eligible Green Projects:

• The amount of proceeds allocated with the list of Eligible Green Bond Projects, and their related

description, and

• Information on the environmental outcomes of the Eligible Green Projects (detailed below).

o In case of a major controversy on an Eligible Green Project, information on key issues at

stake and actions put in place by ENGIE.

o ENGIE will mandate an external auditor to control whether the allocation of the Green Bond

proceeds to Eligible Projects is consistent with data underlying the accounting records.

Renewable Energy

o per geographic zone:

• Annual reduction of natural resources consumption in Mt; or

• Annual reduction of waste in Mt.Natural Resources

o per geographic zone :

• Annual reduction of energy consumption in % and in MWh ; and

• Annual GHG emissions reduced in tons of CO2 equivalent.

Energy Efficiency

Imp

ac

t in

dic

ato

rs

— Until the net proceeds

are allocated in full.

— Methodology applied on

impact indicators will be

detailed on ENGIE

website for each

reporting.

Management of

Proceeds

o ENGIE has established systems to monitor and account for the allocation of the proceeds.

o ENGIE intends to allocate the proceeds of a given Green Bond issuance within a two-year

period from the issue date.

Reporting


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Appendix


GE Water & Process Technologies takeover by SUEZ

SUEZ has announced the acquisition of GE Water &

Process Technologies, a GE subsidiary specialized in

water treatment for the industrial sector.

As part of the transaction, ENGIE – first SUEZ

shareholder with a 32.6% share - will sign up to a capital

increase up to its participation in SUEZ, namely around

EUR 240 million.

Source: Press release - March 8, 2017

Possible Eligible Projects

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ENGIE Becomes UK’s Leading Provider Of Regeneration

Services For Local Authorities

Keepmoat specializes in the design, refurbishment and

upgrade of buildings and places, helping to transform

communities and strengthen local economies. This

acquisition, valued at £330 million (around €390 million), is

in line with ENGIE’s strategy to be leader of the energy

transition in the world, notably by developing integrated

and innovative solutions for its clients.

Source: Press release - March 2, 2017

New ENGIE successes in Mexico: the Group wins 209

MW in contracts for solar and wind energy projects

ENGIE has won contracts of 209 MW at very competitive

prices for solar and wind energy projects in connection

with a new national call for tenders organized by CENACE,

Mexico’s National Center for Energy Control. These

projects form part of a national policy of the Mexican

government, which aims to increase the share of

renewables in its energy mix to 25% in 2018 and 60% by

2050.

Source: Press release - Sept 30, 2016

100 MW Kathu solar project in the Northern Cape of

South Africa will start construction

Approximately 1,200 jobs will be created during the

construction phase. It is estimated that the Kathu Solar

Park will further promote local economic development

through various projects such as a local community trust

for the benefit of communities in the John Taolo Gaetsewe

District Municipality situated in the Northern Cape and

sourcing of other services from local entrepreneurs.

Source: Press release - May 9, 2016


ENGIE Social Impact Investment: “Rassembleurs d’Energies” Fund

N

°

Company Country

1 Green Bio EnergyWaste to recovery

biomass fuel and

clean cookstoves

Uganda

Clean stoves

N° Company Country

1 Les toits de l’espoir France

2 Le Chênelet France

3 Habitat et humanisme France

4 LivingStones Belgium

N° Company Country

1 Mera Gao Power India

2 Ausar Morocco

3 CDS (micro utility) Mauritania

Energy Efficiency

Micro-mini grids

N° Company Country

1 Biobolsa Mexico

2 SIMGAS Tanzania

Biogas

N

°

Company Country

1 Simpa Networks India

2 Green Village

Ventures

India

3 Rural Spark India

4 Eres Renovable Mexico

5 Fenix international Uganda

6 PEG Ghana Ghana

7 BBOXX Rwanda

N° Company Country

1 Estera France

Biomass

14

So far 18 investments in 4 continents and 6 different technologies from 2011, which

represent a total amount of EUR 16 million at the end of 2016.

1 2

56

4

1

1 2

2

3

13

2

4

1

7 71

3

22

Local solar systems

15/03/2017

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Appendix


ENGIE’s Green Bond launched in 2014

A green bond for a total of €2,5 billions, in 2 tranches comprised of €1,2 billion for 6 years and €1,3 billion for 12 years

€2,5 billions allocated at end of 2016

77 projects with an average size of €32 millions

Full allocation of 2014 Green Bond by the end 2016

% FUNDS ALLOCATED BY TECHNOLOGY% FUNDS ALLOCATED BY GEOGRAPHICAL AREA

Africa

0.4%

Central Europe

4.0%

Latin America

45.7%

North America

9.7%

Western Europe

40.3%

Biomass

9.6%Cooling network

1.7%

Energy Efficiency

13.4%

Geothermal

1.4%

Hydro

36.3%

Solar

14.8%

Wind

22.7%

Projects funded by Green Bond from 2014 to 2016


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Appendix


Board of Directors of ENGIE

Ethics, Environment and Sustainability Committee of the Board

ENGIE Executive Committee

Environmental & societal responsibility

Ethics & Compliance• Health & safety • Social responsibility

ENGIE Foundation

24 CSR directors in BUs

“Rassembleurs d’Energies” social impact fund

CSR policy• Environmental policy• Societal policy• Health & safety policy• Purchasing policy• Ethics policy• Social policy• Tax policy

ENGIE Structured and Efficient Governance


VIGEO EIRIS Second Opinion


Disclaimer


Investor presentation...2017/03/15 · 3 Contents ENGIE Commitments in CSR Green Bond Framework...

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